Solana: Outshined But Not Lifeless As Network Activity Accelerates

Christian Encila

2 years ago

3 mins read

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Solana was scrutinized extensively after speculations appeared connecting it to the bankrupt FTX. The network’s perception of FTX was drastically altered by the occurrence, and the resulting fear, uncertainty, and doubt (FUD) proved challenging to dispel.

Almost 9% of the token’s value was wiped out today, perhaps because of the fallout from the exchange’s downfall, indicating a deepening bear market.

In addition, the CryptoSlam data reveals that the NFT market in the ecosystem has been experiencing severe declines in trading volume and new buyers.

DeFiLlama also reported that SOL’s TVL had dropped by another 10%. When compared to the all-time high in TVL in November of $1.02 billion, the current value of $265.43 million represents a staggering drop of 73.46%.

Data from Messari, however, indicates that Solana is very much alive.

Image: The Independent

Getting Rid Of Security Bugs

Messari’s latest coin report notes various activities, even if the ecosystem does not have a clearly articulated roadmap. For example, JumpCrypto is working on a C++ client for the token’s validator called Firedancer. Because of this, the impact of bugs on the Solana blockchain would be mitigated.

However, such endeavors necessitate time to germinate and grow. At the moment, there are some security holes in Solana that should be fixed.

The Solana DeFi protocol Raydium was compromised on December 16. This resulted in investors and traders losing approximately $2 million. This is expected to diminish confidence in the token further.

Contrary to these neutral and negative changes, Santiment data indicates that on-chain development activity is still quite robust.

SOL total market cap at $4.4 billion | Chart: TradingView.com

Solana Token Needs More Kick

It appears that the Solana Ecosystem is highly resilient due to the significant development activity and activities to enhance on-chain performance. In contrast, Solana’s native coin SOL stands in stark contrast to the ecosystem.

As of the time of writing, the token has support at $11.83 and resistance at $14.98. The increased link between SOL and BTC could become problematic if Bitcoin’s market performance continues to deteriorate.

As the US Federal Reserve prepares for a further hike in interest rates, macroeconomic considerations will also play a role.

The future of Solana is looking bleak at the moment. But, hopefully, as the situation improves, FUD surrounding the ecosystem may diminish. However, if the existing status quo is not altered, SOL might fall to $10.

The next few hours or days will be key for SOL’s price consolidation or capitulation to lower lows, therefore investors and traders should actively monitor the situation.

Christian Encila

They say journalists never truly clock out. But for Christian, that's not just a metaphor, it's a lifestyle. By day, he navigates the ever-shifting tides of the cryptocurrency market, wielding words like a seasoned editor and crafting articles that decipher the jargon for the masses. When the PC goes on hibernate mode, however, his pursuits take a more mechanical (and sometimes philosophical) turn.

Christian's journey with the written word began long before the age of Bitcoin. In the hallowed halls of academia, he honed his craft as a feature writer for his college paper. This early love for storytelling paved the way for a successful stint as an editor at a data engineering firm, where his first-month essay win funded a months-long supply of doggie and kitty treats – a testament to his dedication to his furry companions (more on that later).

Christian then roamed the world of journalism, working at newspapers in Canada and even South Korea. He finally settled down at a local news giant in his hometown in the Philippines for a decade, becoming a total news junkie. But then, something new caught his eye: cryptocurrency. It was like a treasure hunt mixed with storytelling - right up his alley!

So, he landed a killer gig at NewsBTC, where he's one of the go-to guys for all things crypto. He breaks down this confusing stuff into bite-sized pieces, making it easy for anyone to understand (he salutes his management team for teaching him this skill).

Think Christian's all work and no play? Not a chance! When he's not at his computer, you'll find him indulging his passion for motorbikes. A true gearhead, Christian loves tinkering with his bike and savoring the joy of the open road on his 320-cc Yamaha R3. Once a speed demon who hit 120mph (a feat he vowed never to repeat), he now prefers leisurely rides along the coast, enjoying the wind in his thinning hair.

Speaking of chill, Christian's got a crew of furry friends waiting for him at home. Two cats and a dog. He swears cats are way smarter than dogs (sorry, Grizzly), but he adores them all anyway. Apparently, watching his pets just chillin’ helps him analyze and write meticulously formatted articles even better.

Here's the thing about this guy: He works a lot, but he keeps himself fueled by enough coffee to make it through the day - and some seriously delicious (Filipino) food. He says a delectable meal is the secret ingredient to a killer article. And after a long day of crypto crusading, he unwinds with some rum (mixed with milk) while watching slapstick movies.

Looking ahead, Christian sees a bright future with NewsBTC. He says he sees himself privileged to be part of an awesome organization, sharing his expertise and passion with a community he values, and fellow editors - and bosses - he deeply respects.

So, the next time you tread into the world of cryptocurrency, remember the man behind the words – the crypto crusader, the grease monkey, and the feline philosopher, all rolled into one.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.